Mumbai: Market regulator SEBI clarified that FIIs can buy stakes in stock exchanges through transactions outside the unlisted bourses, if it is not an initial allotment.
However, if stock exchanges are listed entities, FIIs have to buy the stake through the exchange only, SEBI said in a statement.
FIIs put together are permitted to buy up to 23% stake in a stock exchange, with FDI allowed up to 26%.
The clarification came as the notification in this respect allows FIIs to buy stakes from the secondary market only.
The SEBI’s statement defines what does secondary market mean with regard to unlisted and listed stock exchanges.